This paper analyzes the behavior of the Brazilian manufacturing industry after the reforms implemented in the nineties. We examine the impact of trade liberalization on industry productivity and estimate the markup of different industrial sectors before and after trade liberalization. Estimates for markup showed a non-competitive practices in most sectors. It was also observed jumps of productivity growht in the majority of the industrial sectors after the reduction of the trade restrictions. There is no significant indication of fall in the market power, which could point to the existence of other channels responsible for the productivity increase than competition from abroad.
